Posted by tina on Aug 23, 2016


Overcoming High Risk Processing Hurdles

According to research, there are 200 million digital shoppers in the U.S.  More than 75% of U.S.-based adults who were surveyed stated they buy online on a regular basis.

With this boom in Internet purchases, it is essential for every online retailer to be able to accept payment by credit card and debit cards.

However, for some retailers establishing an account with a merchant services provider isn’t quite so simple; no matter how solid the business is, you might still struggle to get an account. If you’re finding it difficult to find a merchant services provider, there is an option: high risk credit card processing.

Why Is Your Business Considered High Risk?

A number of businesses will fall into the high-risk category merely because of the niche they are trading in.  For example, some types of businesses have a higher statistical incidence of charge-back or fraud.

Even if your particular company has low charge backs, classification within these industries will automatically categorize your business as high risk.  High risk industries include, but are not limited to:

  • E-commerce stores/buyer not present transactions
  • Digital content & steaming websites
  • Subscription, continuity, recurring billing & recurring payments
  • Travel & transportation companies
  • MLM & direct sales
  • Financial services
  • Adult/dating websites
  • E-cigarette / vaping
  • Loans/Finance businesses
  • Nutraceauticals, vitamins & supplants
  • Cyrptocurrency

In addition, there can also be some less obvious businesses that fall into a high risk category. This includes businesses that sell custom-made products.  Or companies that sell high ticket items.  Or fast-growing companies that require high volume processing capacity.

However, there can be other reasons why your business is considered high risk. For instance, you might have a bad credit record or you could have had an excessive number of chargebacks with a previous merchant services account. Alternatively, you could be selling goods that are high value and more open to the risk of fraud or run a subscription based business. If you are a new business, this could also mean you are put in the ‘high risk’ category.

All of the above factors can make it difficult to get an account with a merchant services provider, and without the facility to accept online credit/debit card payments, your business is likely to lose out to competitors.

Finding The Right Merchant Services Provider

Just because your business is considered high risk, that doesn’t mean your company has to suffer. If you have the potential to build a successful retail business, but you currently only offer limited payment choices, the answer is to find a merchant services provider that is willing to cater for your needs. These types of companies are referred to as high risk merchant service providers.

How Do You Set Up An Account?

Setting up an account to handle high risk credit card processing is a straight forward procedure - and if you are using a reputable company, it will be free of charge. To get the process underway, you’ll need to fill out an application form and submit your paperwork. Domestic customers should know within a week whether their application has been accepted.

If you’re a start-up business, many high risk merchant account providers will not work with you. However, if you have a strong business model and are well-capitalized, you are sure to find a risk merchant account provider. 


Some businesses naturally attract a higher chance of a charge-back or fraud. Also, businesses with recurring billing models, high ticket sales, high volume processing, and fast growing companies can all be classified as high risk.  Still, you can still obtain payment processing at favorable rates.  

By applying to the right high risk credit card processing provider, you can offer an increased range of payment services to your customers. And you benefit from improved sales and profits as a result.

How are you handling your high risk payment processing?

Contact today